Online marketplaces ― sales of goods outside the UK at the point of sale

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note looks at the VAT obligations arising when goods located outside the UK at the point of sale are sold via an online marketplace (OMP) and imported into the UK.

For an overview of the provisions relating to the sale of goods via an OMP, including the definition of an OMP, see the Online marketplaces ― overview guidance note. For sales of goods facilitated via an OMP when the goods are already in the UK at the point of sale, see the Online marketplaces ― sales of goods in the UK at the point of sale guidance note.

In-depth commentary on the legislation can be found in De Voil Indirect Tax Service V3.268.

Background

OMPs become ‘deemed suppliers’ and VAT collectors when they facilitate certain transactions for third-party sellers. When goods which are subsequently imported into the UK are outside the UK at the point of sale, the application of the deemed supply rules depends on the value of the goods, specifically

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